Flexible Spending Accounts

Flexible Spending Accounts provide you with the opportunity to pay for certain dependent and health care expenses using pre-tax dollars. Participating in a Flexible Spending account is voluntary — you decide to have a specified amount of pre-tax dollars deducted from your paycheck each pay period. These dollars are subtracted from your gross earnings before taxes and then contributed to a reimbursement account established in your name.

Because of the tax advantages of Flexible Spending accounts, the IRS has imposed limitations on the use of before-tax contributions. One IRS rule, commonly referred to as the "use it or lose it" rule, requires a forfeiture of any amounts credited to your account which are not used to pay eligible expenses during the plan year. If you wish to participate in these programs, carefully estimate the costs of your dependent care and health care expenses during the plan year before deciding on the amount to contribute.

Dependent Care Advantage Account

The Dependent Care Advantage Account is a negotiated benefit that helps you pay your child, elder or dependent disabled care expenses.  For an enrollment kit, call 1-800-358-7202 or visit: www.flexspend.ny.gov/2013/dcaa.asp. Enrollment applications must be submitted within 60 days of the start of your appointment, or when you experience a valid change in status, or during the annual open enrollment period.

HealthCare Spending Account

The HealthCare Spending Account helps you pay for medical, dental, vision and hearing expenses that are not reimbursed by your health insurance plan. For more information about eligibility and enrollment options, call 1-800-358-7202 or go the web site at www.flexspend.ny.gov/2013/hcsa.asp.  Enrollment applications must be submitted within 60 days of the start of your appointment or during the annual open enrollment period.

Eligibility Requirements, Effective Date, Cost

• Must be receiving regular biweekly paychecks.
• Must be eligible for health insurance.
• Effective immediately; must enroll within 60 days of appointment or during the annual open enrollment period.
• The employee determines the amount to be deducted, maximum $5,000 for child/elder care; minimum $100, maximum $2,500 for health care.